The sun. [volume] (New York [N.Y.]) 1833-1916, 1887-10-09
The Federal Tax on Spirits.

II is common opinion that the internal
revenue tax on spirits Is maintained in defer
ence to prohibition sentiment. This opinion
has very little foundation In fact. The PrOhi-
. bitionists are not the men whose influence
prevails with Congress; and they are not
responsible for the continued imposition OF a
tax which is generally unpopular and OF
questionable constitutionality. There are at
least two other potent influences at work.
/ In the first place the free traders, Of course,
want an opportunity for attacking the pro-
tective system; but they cal find no excuse
II they cannot point to surplus revenue.
Protection Is intrenched in the sympathy Of
the workmen, who hold firmly to the belief
that q barrier must be imposed for the de-
fence Of the American market. They are
profoundly impressed with the idea that
goods produced in Europe at so per cent.
lower cost than they can be produced
In this country, and brought to New
York in ships that accept the lading almost
as asubstitute for ballast, cannot fail to be
detrimental to the interests Of American
labor. In the face Of these facts the free
traders seem to have been forced to abandon
argument, and to find their alternative In
Z defending, or at least maintaining. tax
which causes revenue surplus, and seems
to justify their demand for sweeping import
duty. They have intelligence enough to
know that reduction In duties usually re-
suits in an increase in revenue, the increased
importations more than making up for the
percentage lost But there Is some ignorance
Of this principle; and here Is the first in
trenchment Of the internal revenue system.
But the free traders could not maintain
this unpopular tax had they not powerful
allies. The distillers find 1t greatly to their
advantage to have their industry protected
by a Federal police maintained under the plea
OF collecting internal revenue. Substantially,
the manufacture Of whiskey has been madea
monopoly In which the Federal authority Is
special partner. the distillers owning the
plant, but Congress engaging itself to drive
all the moonshiners out OF the Cum
berland Mountains or from any other
point, and to give security against competi-
ton. the consideration being division OF
the profits. Under these circumstances 1t
Is not strange that the distillers should BIO
satisfied with the compact nor that they
should seek to strengthen and justify the
alliance by asserting that the Prohibitionists
favor the tax. It Is q little strange, however,
that some OF the Prohibiti0nists themselves,
confused by the frequent iteration and re-
iteration of the assertion, should have come
to almost accept 1t for truth.
The idea that the alliance between Con-
gress and the distillers Is favored by any
considerable number Of the Prohibitionists
Is too foolish to be seriously entertained.
They cannot fail Of sealing the advantage
given to the manufacturers OF intoxicants
by their munihcent contribution to the pub
Lie revenues. where the amount stated In
totals, is easily observed. Their own cause
becomes the chief sufferer.
All the revenue that can be raised by tax
on tho liquor traffic is needed for the de-
nAnds OF local administration; and all the
restriction that taxation imposes on con-
sumption can DO secured by local excise laws
much better than BY >. Federal tax II 1t be